You will know that the RFU has decided that the men’s 1st team will play in Regional 1 North East next season. We have been selected for this transfer once before, but this time we are joined by Penrith so, at least we retain a local derby game. Members have naturally asked if we could appeal against the change, but the RFU rules mean that there is no appeal mechanism and we just have to accept the allocation. We are not as unfortunate as Lymm and Chester at level 4 who have both been selected to play in National 2 West which means away trips to Somerset, Devon and Cornwall.
The last few months have been overshadowed by a tragic incident involving the death of a 10-year old child who was football training on our 3G pitch. This event had a devastating effect on the Club, GT7 Football Academy and the local community. I am proud of and grateful to all those who helped in many ways to deal with an unprecedented tragedy. The family support network of both the rugby and football communities responded in an exceptional way.
We are extremely grateful to our sponsors, members and supporters as without your financial support we could not continue to provide the sporting opportunities for our local community.
I am pleased to report that we have a new Honorary Secretary, Jackie Holmes, who replaces Mike Barr. She is an experienced administrator and we are very grateful for her offering to help us with such an important role within the Club.
As many of you may know, this is my last Chairman’s report as I am standing down after 20 years as Chairman of this great Club. It has been a privilege and an honour to work with a dedicated group of fellow Board members and be part of such a vibrant, friendly community Club. Seeing the successful development of players, teams and coaches and remaining competitive in a tough environment has been a very positive experience. I and my family have been involved in many aspects of the Club with my son a past 1st Team Captain and one of my daughters providing medical cover.
My tenure has been over a period of continuous change in both the structure and location of the Club. Notable events have been working with the developer, planning the sale and the move from the ‘old’ Mint Bridge; the adoption of Charitable status in 2015; preparing for the move to our new premises in 2017 and the establishment of the facilities; progress was then interrupted by the Covid epidemic.
We are fortunate to have one of the best rugby and social facilities in the north-west and much effort has gone into marketing our Club to generate regular income to support community rugby. Inevitably it has not been all plain sailing and not everything went smoothly. The early period in our new premises was badly managed with poor budgetary control and I am particularly grateful to Board members who helped to rescue the Club from a precarious situation.
Essentially the Board’s function is to ensure the financial stability of the Club so we can support rugby in all its forms. This may sound simple, but it is not…the increasing complexity of our activities, massive increases in utility costs and gradual withdrawal of RFU financial support have all added to the difficult balance in the Club’s performance over the years. This year we are pleased to report a positive outcome of the trading subsidiary of £77k in contrast to a loss of £43k last year. This is only the second time in my 20 years that we have managed to declare a ‘profit’ and a £120k reversal is an indication of the hard work that the Board does behind the scenes.
I am enormously grateful for the support that I have received from many quarters within the Club. I shall not be leaving the Club itself, just an official position, and shall continue to help in practical ways. I, of course, wish you all the best for the future and know the Club will be in good hands.
Kind regards, Stephen Green
The trustees present their annual report and financial statements for the year ended 30 April 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Summary of the objects set out in the governing document
The Charity’s objects are as follows:
1) To promote community participation in healthy recreation by providing for playing rugby union football and other sports.
2) To provide and assist in providing facilities for sport, recreation or other leisure time occupation of such persons who have need of such facilities by reason of their youth, age, infirmity or disablement, poverty or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving their conditions of life.
3) To advance the education of children and young people through such means as the directors think fit in accordance with the laws of the charity.
Summary of the main activities in relation to these objects
Senior Rugby – Coaching and training of senior rugby teams for both men and ladies and the playing of matches in various leagues.
Youth Rugby – Coaching and training of several age related teams of rugby players from the age of 13 to 18 and playing in matches and tournaments.
Mini Rugby – Coaching and training of several age related teams for boys and girls from the ages of 5 to 12 and playing in matches and tournaments
General – Through schools and specific courses open to the public, the club offers rugby playing opportunities to the wider community
In addition, in line with its objectives, the Charity offers opportunities for the community to take part in Touch Rugby sessions for all age ranges, Walking Rugby (for mixed genders) for the over 50s and the use of facilities for Rugby Camps.
The trustees confirm that they have referred to the guidance contained in the Charity Commissioner’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities.
The trustees are satisfied that the charity continues to meet the required public benefit test through its objectives and activities.
The Men’s 1st team finished 9th in a competitive League, the newly promoted Wasps continued their high standard by finishing 5th of 8 in Championship North 2. The 2nds finished 10th of 12 in the Halbro League and will be among 4 teams relegated to the League below for next season.
We have had success throughout the Club, from the 5-year-old Little Stingers to the slightly older Auld Greys who have a large regular following playing Walking Rugby. The AGs have led the way in expanding interest in Walking Rugby and have instituted an annual Festival in held in May, which attracted teams from far and wide, including representatives from our twin town in Germany. They continue to recruit and promote fitness for the local population of over 50s.
We achieved representation in both the men’s and women’s County squads with a significant number of Kendal players representing Cumbria.
Three of the Charity Trustees are also Directors of the Trading Company, which manages the First team and the operation of the bar, servery and other catering facilities. The Charity charges the Trading Company rent (currently £17,500 per annum) for use of the facilities and a 7-year Lease was renewed during the reporting period.
A separate set of accounts is prepared for the Trading Company and a summary is shown at Note 22.
Last year the Charity donated £50k to the Trading Company to pay legitimate expenses incurred by the Charity supporting its aims and objectives relating to the local community. Loans to the Trading Company decreased by £17k from £264k to £247k (2024: increased by £41k from £223k to £264k).
It is the desired policy of the board to create and retain sufficient reserves to enable the club to maintain and enhance its facilities and provide rugby opportunities to the communities in the Kendal area.
Investment
The Trustees have the power to invest the Club's assets as they see fit. The investment committee is chaired by Chris Wheatman together with three other Trustees and reviews the opportunities for a return on the Club's capital while protecting its assets. The net investment income less charges plus net gains over the year was a gain of £35k with a year end valuation of £1,536k (2024: £1,516k).
Note during the year there was a withdrawal of funds totalling £15k (2024: £119k) which represents the difference between the gain for the year and the increase of the overall year end valuation investment.
Major risks to which the charity is exposed
The trustees have examined the major strategic, business and operational risks which the charity faces and confirms that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen these risks.
Legal status
The Charity is a company limited by guarantee and as such, does not have a share capital. Every member undertakes to contribute such amounts as may be required (not exceeding £10) to the company's assets if it should be wound up whilst he or she is a member, or within one year after he or she ceases to be a member, for payment of the company's debts and liabilities contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves.
Governing document
Kendal Rugby Union Football Club Limited is an independent registered charity governed by its memorandum and articles of association dated 22 April 2003 as amended by special resolution dated 17th March 2015.
Organisational structure
The Charity Trustees are all volunteers and are responsible for general control and management of the Charity. Regular meetings are held by Trustees and also by Team members to discuss finance, training and other relevant issues.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Method adopted for the recruitment and appointment of new trustees
New trustees are invited to stand for election by reference to their skills and experience and to the needs of the charity. Candidates are then voted on by the charity's members at the Annual General Meeting (AGM). If elected each trustee agrees to serve for a three year term after which they either resign or hold themselves up for re-election.
Trustee induction and training
New Trustees are shown a copy of the Charity's Articles of Association and advised on the policy, procedure and responsibilities of the Charity under the Charities Act.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Kendal Rugby Union Football Club Limited (the charity) for the year ended 30 April 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Kendal Rugby Union Football Club Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Mint Bridge, Shap Road, Kendal, Cumbria, LA9 6NY.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
Income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period.
Current tax is recognised on taxable income or expenditure for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Consolidation
The charity is not required to prepare consolidated accounts in accordance with the Charities Act 2011, and has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertakings comprise a small group.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The judgement that the trustees have made that has a significant risk of causing a material adjustment to the carrying amount of assets in the next financial year is with regard to debtors, specifically loans to Kendal Rugby (Trading) Limited. The accounts have been prepared assuming that the outstanding capital repayments and interest due will be paid in the near future.
No expenses have been received by any trustee for services provided to the charity.
The average monthly number of employees during the year was:
No remuneration of key management personnel was paid during the reporting period.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
All investments shown above are held at valuation.
All investments are held to be provide an investment return for the charity.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The restricted rugby equipment fund represents the monies received for the purpose of purchasing equipment to replace equipment required for the provision of rugby.
The restricted drainage works reserve reflects the monies received for the purpose of completing the improvement of the drainage of the rugby fields.
The restricted PCC for Cumbria grant fund reserve represents the Police and Crime Commissioner's funding for the purpose of reducing anti social behaviour in the local community via a structured gym and rugby programme for 12 males aged 16-18.
The restricted fencing repairs fund reserve represents the monies received for the repairs to the 4G pitch fencing.
During the current reporting period the following transfers between funds were made;
£500 was transferred from the rugby equipment fund reserve to the designated tangible fixed asset reserve in respect of the purchase of equipment capitalised during the period.
There were no transfers recognised in relation to restricted funds during the prior reporting period.
These are unrestricted funds which are material to the charity's activities.
The designated tangible fixed assets fund represents the net book value of freehold property and fixtures, fittings and equipment.
The designated investment reserve reflects the value of the investments managed by Rathbone Investment Management Limited.
The designated match funding reserve represents the funding matched against pre match raffles to be used for the mini and youth teams.
During the current reporting period the following transfers between funds were made;
£10,291 was transferred from designated investment reserve to the unrestricted general fund in respect of the continued financial support of the trading subsidiary.
£172 was transferred from designated investment reserve to the designated tangible fixed assets reserve in respect of the purchase of equipment for the facilities.
£4,537 was transferred from designated investment reserve to the restricted drainage works fund in respect of the additional works completed to assist in the drainage of the facilities.
During the prior reporting period the following transfers between funds were made;
£83,275 was transferred from designated investment reserve to the unrestricted general fund in respect of the continued financial support of the trading subsidiary.
£35,725 was transferred from designated investment reserve to the designated tangible fixed assets reserve in respect of the installation of two new boilers within the premise.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The amounts reflect the lease renewal between the Trustees of Kendal Rugby Union Football Club Limited and Kendal Rugby (Trading) Limited for the lease of land and property at Mint Bridge. The term of the lease is seven years from 24 November 2024 to 23 November 2032 and has a review date of 24 November 2029. The rent payable is £17,500 per year.
At the reporting end date the charity had contracted with tenants for the following minimum lease payments:
Subsidiary Undertakings
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Kendal Rugby Union Football Club Limited is a company limited by guarantee; each member's contribution not exceeding £10 on dissolution.